Call ratio spread (1×2)
Neutral / rangeLimited profitUnlimited loss
Buy 1 call, sell 2 higher: profit peak at the short strike, risk above.
Payoff at expiry — live BTC example
Net debit
$306.75
Max profit
$1,093
Max loss
Unlimited
Breakevens
66,107 / 68,293
Example legs (0.7 DTE front)
- Buy 65,800 call
- Sell 2× 67,200 call
Entry greeks (per 1 BTC notional): Δ 0.429 · Γ 0.1540 per 1% · vega $4.52/pt · theta $-71.41/day
How it works
The extra short call finances the long: often near zero cost, max profit at the short strike, naked exposure beyond it.
When to use it
You expect a drift up to a level but NOT through it — "up, but not that much".
Risks & management
The naked upper call makes a melt-up the worst case. The classic blow-up is being right early and wrong late.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.